Kampala, Uganda | The Government of Uganda has unveiled an ambitious plan to position the country as a regional leader in agro-industrial exports, focusing on the rapidly growing market for animal feeds and processed foods across Africa.
Speaking at the 16th National Competitiveness Forum (NCF) held at the Golf Course Hotel in Kampala, the Acting Permanent Secretary and Secretary to the Treasury, Patrick Ocailap, said Uganda must urgently establish a competitive animal feed industry to leverage its abundant raw materials, including maize, soybeans, sunflower, cottonseed, cassava, sweet potatoes, and fish meal.
Ocailap noted that rising regional demand presents a major economic opportunity.
He said Africa’s growing middle class, urbanization, and increasing disposable incomes are driving an unprecedented surge in demand for processed foods and animal protein.
He said that by 2040, demand for processed food in Africa is projected to increase sevenfold and that Uganda is well-positioned to supply this market.
According to government data, Uganda already exports 58% of its products to Africa, with animal feeds constituting a substantial portion of these exports.
The African Continental Free Trade Area (AfCFTA), which Ocailap described as a game-changer, now provides Uganda access to a market of 1.4 billion people with a combined GDP of over USD 3 trillion.
Ocailap revealed that under the Parish Development Model (PDM), the government has disbursed UGX 3.209 trillion as of October 2025 to more than 3.25 million beneficiaries.
This funding is intended to stimulate the production of strategic commodities and increase participation in agro-processing.
Breakdown of allocations for FY 2024/2025 includes UGX 350.3 billion for piggery, UGX 334.2 billion for coffee, UGX 325.8 billion for poultry, UGX 289 billion for goats, UGX 247.9 billion for maize, UGX 154.4 billion for bananas, UGX 135 billion for beef cattle, and UGX 134 billion for cassava.
Ocailap said this investment is creating direct linkages with smallholder farmers and enabling value addition.
Officiating at the Forum, Minister of State for Planning Amos Lugoloobi said industrial value addition is essential for Uganda to compete regionally.
Lugoloobi said that investing in high-quality processing, product standardisation, and packaging is no longer optional if Uganda is to access and sustain markets in the region.
He acknowledged that Uganda still lacks adequate capacity to produce high-quality processed food and premixes, resulting in high import levels.
He called for deliberate strategies to build local manufacturing capacities and reduce dependency on imports.
The Minister said the government is implementing the Economic and Commercial Diplomacy Strategy, aimed at using foreign missions to gather market intelligence, promote Uganda’s exports, and attract foreign investment.
To support the Tenfold Growth Strategy, Uganda has secured a USD 96 million loan under the INVITE Project, USD 104 million grant, and USD 18 million from a multi-donor trust fund.
The global animal feed market grew from USD 335.7 billion in 2017 to USD 570.2 billion in 2023 and is projected to reach USD 816.8 billion by 2030.
Within AfCFTA, feed production stands at 51.42 million tonnes valued at USD 21 billion, expected to grow to USD 27 billion.
Despite exporting 3,144 tonnes of animal feeds valued at USD 1 million in 2023, Uganda imported 136,878 tonnes valued at USD 52 million, indicating a significant opportunity for import substitution.
Under the Public Investment Management for Agro-Industrialisation (PIMA), government has identified nine key commodities to spearhead industrialisation: dairy, beef, fish, coffee, cassava, oil palm, maize, cotton, and tea.
An additional nine commodities, including poultry, bananas, cocoa, rice, sugarcane, beans, macadamia nuts, shea nuts and Irish potatoes are being promoted under the Parish Development Model, bringing the total to 18 strategic commodities.h